Monday stocks climb on bank reform, China growth

Dow at 10,517, up 55 points so far today.

NEW YORK (AP) — Stocks extended their rally into a third week Monday as investors sent bank stocks higher following new global regulatory requirements and China’s economy continued its robust growth.
A round of corporate dealmaking also gave a lift to stocks. Hewlett-Packard Co. said it will purchase security software provider ArcSight Inc. Dollar Thrifty Automotive Group Inc. said it accepted Hertz Global Holdings Inc.’s acquisition offer. Acquisitions are often a sign that companies are confident the economy is going to expand soon.
The Dow Jones industrial average rose nearly 43 points in afternoon trading after paring early morning gains. If the Dow holds onto gains Monday, it would be the eighth time in nine days that the index has risen.
“The package of catalysts is a perfect backdrop for a market trying to confirm global economic growth,” said Quincy Krosby, a market strategist at Prudential Financial. Dealmaking and the expansion in China further reduced worries about the economy falling back into recession, Krosby said.
Stocks pulled off their highs Monday afternoon as investors pulled money out of retail stocks ahead of the government’s monthly retail sales report due out Tuesday.
Global regulators agreed to reforms that could help avoid another credit crisis that plagued financial markets worldwide in 2008 and early 2009. Banks will gradually have to increase their reserves to protect against potential losses.

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